TRACT is an Amsterdam-based provider of sustainability measurement systems for agricultural and food industry supply chains. It has managed to bag a fresh funding round of $11.2 million, which is going to be used to expand its services, including a SaaS platform that companies use to measure and lessen their carbon footprint. The platform smoothes out complex data management, allowing for insight into environmental effects and easy achievement of sustainability goals.
This round was participated by new investors The Working Capital Fund and Rabo Investments, the investment arm of Rabobank. It was also joined by existing shareholders Archer Daniels Midland Company (ADM), Cargill, Louis Dreyfus Company (LDC), and Olam. Such contributions point to an increasing confidence in the mission of TRACT in making the agriculture sector more sustainable.
TRACT intends to use the financing to speed up work on scope 3 emissions – indirect emissions along supply chains – and provide farmer income data. The company is also looking to enhance its ability to support EU rule compliance, including CSRD and CSDDD. CSRD and CSDDD will oblige companies to disclose sustainability information and conduct due diligence on sustainability within business partners’ activities.
The agriculture and food industries account for around 25% of global greenhouse gas emissions; thus, the pressure on these industries to operate sustainably is at its highest ever. TRACT is being lauded for making sustainability reporting easier while providing comprehensive tools for conducting due diligence and exchanging data. Some of the high-profile customers of this platform include Nestlé, Cargill, ADM, and Olam, who have taken it for their sustainability purposes. WORK In addition, TRACT developed methodologies for deforestation assessment and human rights risk scores in cooperation with Wageningen University & Research.
Allison Kopf, CEO of TRACT, is positive about the company’s future and speaks of new partners such as The Working Capital Fund and Rabo Investments: “We believe in shaping increasingly sustainable agricultural supply chains for a better future,” she said, highlighting the uplifting effect of this funding on their mission.
Floris Onvlee, director of corporate venturing at Rabo Investments, believes that TRACT is well positioned to become the leader in sustainability data management and traceability for agriculture. The investment would scale TRACT’s solutions and allow the company to accelerate the transition into a more sustainable value chain.
TRACT’s innovation and sustainability must be credited for attracting the industry’s leaders to continue in their role as a key player in addressing the environmental challenges of the agricultural sector.